Effective collusion generally is more difficult as the number of oligopolistic firms involved increases.

Question

Quizplus · Accepted Answer

This is because as the number of firms increases, each firm must consider a larger number of potential reactions and responses from its competitors, making coordination more difficult. Additionally, as the number of firms increases, the market becomes more competitive, reducing the potential benefits of colluding.

Effective Collusion Generally Is More Difficult as the Number of Oligopolistic